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Higher inflation also means that it's cheaper for the U.S. government to borrow money. In fact, higher inflation is good for anyone who borrows money (people wi
by dwrtz 13y ago
Higher inflation also means that it's cheaper for the U.S. government to borrow money. In fact, higher inflation is good for anyone who borrows money (people with mortgages, student loans, etc.) because they're effectively paying back less than they borrowed.
- jswinghammer 13y agoExcept that the risk is asymmetric in that the bank gets bailed out if you can't pay and you don't. They loaned out the phony money and you paid it back with your labor.
- eli_gottlieb 13y agoWhich is a problem of politics, not economics. There's a broad agreement that the bank bailouts should not have happened across most of the actual political spectrum. Only the vulgar neoliberals serving the interests of the capitalist class in government actually want to print money as bailout loans to banks, and yet Austrian "economists" and their Believers pretend that's the only alternative to a deflationary gold standard and total privatization of everything ever.
- jswinghammer 13y agoEvidence suggests that it they are correct but the part you are missing is that the whole point of the system is to bail out the large banks when their bets go bad. All in the name of the people. Whoever they ever are.
- eli_gottlieb 13y agoWhich system?